NHPC Q4 FY26 profit up 71%: dividend, FY26 update

NHPC’s latest results in focus

NHPC Limited’s March 2026 quarter (Q4 FY26) results brought the PSU hydropower major back into the spotlight, with a sharp year-on-year jump in profit alongside higher revenue. The company also recommended a final dividend, outlined major commissioning milestones across hydro and solar assets, and cleared fundraising plans for the next financial year.

The updates come after a mixed operating backdrop earlier in FY26, when management flagged monsoon-related disruptions and persistent project execution challenges such as geological issues and tariff approval timelines. Even so, NHPC has continued to broaden its clean energy pipeline and reiterated its focus on transparency and stakeholder engagement.

Q4 FY26: profit rise, revenue improvement, and cost pressures

Reported numbers for Q4 FY26 show strong bottom-line growth, supported by higher income and tax-related adjustments during the year. In one set of reported consolidated numbers, NHPC posted a 71.1% year-on-year increase in net profit to ₹1,460.16 crore, alongside revenue of ₹2,815.53 crore in Q4 FY26 compared with the year-ago quarter. Another report on the March quarter put consolidated net profit at ₹1,549.42 crore and total income at ₹3,120.52 crore, versus ₹919.63 crore and ₹2,557.71 crore respectively in Q4 FY25.

Expense items showed meaningful movement during the quarter. Total operating expenses were reported at ₹2,178.82 crore, up 90.8% year-on-year. NHPC also recorded an interest outgo of ₹574.28 crore in March 2026, compared with an interest cost write-back of ₹12.09 crore in the same period last year. Depreciation charges increased 104% year-on-year to ₹642.01 crore in Q4 FY26.

Based on the reported expense mix, the company posted a pre-tax loss of ₹273.78 crore in Q4 FY26, compared with a pre-tax profit of ₹1,166.78 crore in Q4 FY25. Tax outgo for the quarter was ₹146.79 crore, down 34.2% year-on-year, and the company also wrote back deferred taxes worth ₹1,969.99 crore in Q4 FY26.

FY26 performance: revenue and profit growth

For FY26, one set of reported consolidated numbers showed net profit of ₹3,765.74 crore (up 25.2% year-on-year) and revenue from operations of ₹11,615.29 crore (up 11.9% year-on-year). Separately, another set of annual consolidated figures reported net profit of ₹4,220.46 crore versus ₹3,411.73 crore in FY25, and total income of ₹12,686.09 crore versus ₹11,614.61 crore.

The company also disclosed that it spent 12.25% of operating revenues towards interest expenses and 12.9% towards employee cost in the year ended March 31, 2026.

Dividend: final payout recommended after interim dividend

NHPC’s board recommended a final dividend of ₹0.21 per equity share for FY26, subject to shareholder approval. The company had already paid an interim dividend of ₹1.40 per share in February 2026. Based on the figures provided, the total dividend for FY26 is ₹1.61 per share.

Fundraising plan: up to ₹2,000 crore via bonds in FY27

To support ongoing hydro and renewable projects, NHPC’s board approved fundraising of up to ₹2,000 crore through private placement of listed taxable bonds in FY27. The planned instrument was described as listed, unsecured, non-cumulative, non-convertible, redeemable, taxable Series A1 bonds.

Project execution: hydro commissioning and solar scale-up

NHPC highlighted notable commissioning progress during FY26, particularly in large hydro projects and a new solar asset. In its flagship 2,000 MW Subansiri Lower Hydroelectric Project, the company commissioned three units totaling 750 MW during FY26. A further 250 MW unit became operational on May 8, 2026, taking installed capacity at Subansiri Lower to 1,000 MW.

The company also pointed to the 800 MW Parbati-II Hydroelectric Project, which was commissioned in April 2025. Pending final tariff approval from CERC, NHPC recognized provisional sales revenue of ₹1,278.44 crore during FY26.

On the renewable side, NHPC commissioned the 300 MW Karnisar Solar Project during FY26 and recognized ₹86.50 crore of revenue from it. The broader strategic direction referenced a renewable build-out with planned capacity additions, including 2,744 MW in FY27.

Generation and operating metrics: FY26 and nine-month snapshot

Operationally, NHPC reported that power stations achieved generation of 23,307 million units (MUs) in FY26 on a standalone basis, with installed capacity of 7,401 MW from 25 power stations.

Earlier in FY26, the company’s commentary indicated resilience through weather disruptions. For Q3 FY26, it reported a 15% increase in power generation even as Plant Availability Factor declined 3% due to monsoon disruptions. For the nine months of FY26, NHPC’s power generation was cited at 25,849 MUs.

Q3 FY26 and nine-month financial snapshot

For the nine months of FY26, NHPC reported revenue of ₹8,800 crore, up 10%, though Q3 was said to be impacted by prior-year adjustments. Q3 FY26 revenue was reported at ₹2,221 crore.

The company also reported a significant reduction in employee costs, from ₹1,402 crore to ₹1,096 crore.

Audit, leverage, and ownership disclosures

NHPC stated that its joint statutory auditors issued an unmodified audit opinion on both standalone and consolidated financial results for FY26. The company also disclosed that there were no defaults on loans or debt securities.

As of March 31, 2026, total indebtedness was reported at ₹46,227.20 crore, and security cover for secured debt securities remained above 100%, with compliance to Debenture Trust Deed covenants. Government of India shareholding in the company was stated at 67.4% as of March 31, 2026.

Stock snapshot: recent move and context

On 18 May 2026, NHPC shares were reported at ₹77.71, up 1.20% from the previous close of ₹76.79. A separate snapshot showed -1.87% change since the start of the year and a +1.20% five-day change. Another data point noted the scrip fell 2.05% to close at ₹76.81 on the BSE on a Friday.

Key figures at a glance

What stands out for investors

Two themes run through NHPC’s FY26 narrative: execution progress and financial reporting items. The year saw commissioning across hydro and solar assets, including partial commissioning at Subansiri Lower and revenue recognition from Karnisar Solar. At the same time, the quarter’s reported pre-tax loss alongside a higher reported PAT highlights how depreciation, interest, and tax-related items can significantly influence the headline profit number.

NHPC also signalled continued reliance on debt markets to fund expansion, with approval for up to ₹2,000 crore in bonds for FY27, while maintaining that it remains compliant on debt covenants and security cover. Operationally, the company’s commentary also flagged the ongoing frictions typical to large hydro builds, including geological challenges and tariff approval timelines.

Conclusion

NHPC’s Q4 FY26 updates combine a sharp year-on-year rise in reported profit, a final dividend recommendation, and fresh visibility into commissioning progress across hydro and solar projects. The company’s next key checkpoints include shareholder approval for the final dividend and the execution of its proposed bond fundraising in FY27, alongside tariff-related developments for projects such as Parbati-II.